Andy the Actuary

T'is far better to be the butt of your jokes than the joke of your . . .

http://www.efast.dol.gov/portal/app/dissem...?execution=e1s1 Very, very easy to find, especially if you just happened upon it when surfing for special calendars. Our friends in government would do well to ask practitioners to test their crud.

Believe it is being reduced because of service. Had he come back to work but during his out period the plan had been amended to preclude participation or reparticipation, his accrued benefit would have remained at the frozen state. Question: Following your comment: Suppose he had started his pension when he first left and then came back to work. Would you then reduce his pension?

It is not uncommon for employers sponsoring plans with few participants to write paper checks for lump sum distributions at the federal income tax withholding. We are likely to have: Proposed Regulations Expand the Use of Electronic Payment System and Discontinue Paper Coupons Next Year WASHINGTON — Consistent with a Financial Management Service initiative announced in April of this year, the IRS today issued proposed regulations to significantly increase the number of electronic transactions between taxpayers and the federal government. The proposed regulations (REG 153340-09) would eliminate the rules for making federal tax deposits by paper coupon because the paper coupon system will no longer be maintained by the Treasury Department after Dec. 31, 2010. The proposed regulations generally maintain existing rules for depositing federal taxes through the Electronic Federal Tax Payment System (EFTPS). Any guesses whether or not the EFTPS will apply to pension payments. As an aside, I looked at the website and it appears the only way say to make estimated taxes is to provide the IRS with your personal checking/savings account routing number.

What is the basis (code, regulation, ERISA Outline Book, etc.) for your conclusion in (3) that "you don't see how that is right"??? That is, where do you read that it is okay to decrease the accrued benefit? Another way to look at this is that you have two participants -- (a) is a terminated vested with an accrued benefit and (b) is the participant terminating now who will get the difference between what the formula produces and (a), or $0.

The accrued benefit cannot decrease by increase of age or service -- 411(b)(1)(G). So, assuming he was not paid a lump sum, wouldn't his accrued benefit be the greater of (a) his accrued benefit after the first 20 years and (b) accrued benefit at most recent date of termination using the average compensation the Plan provides at this time and all of his service? I.e., it would not decrease from what he had previously earned (provided he was not distributed a lump sum). It might be helpful if you would state the "average compensation provision" actual wording.

Here is error screen Doc2.pdf

Yes, had already tried trial version. This is not a licensing issue. I regret but I'm not uninstalling anything microsoft on the "if-come." The local installation aborted in the same manner. The install aborts after I have entered my key codes and install has started copying. The information I saw on the internet was for "games" that failed to install and aborted with the same message. This is why I do not believe this to be a relius issue.

As a third option, you may wish to review the tax/penalty consequences if the Plan becomes disqualified.

Thank you. (1) I am signed on as an Administrator. (2) This incident occurs whether I install from CD or from a downloaded executable .exe. (3) I loaded a year or so ago 2007 Forms with no issue. (4) I suspect that some folder/file has been assigned a "read only" or "hidden" status but I am unable to locate. (5) I found via google that others had this intall issue with other software but no solutions were proffered. I do not believe this is a relius issue. (6) What is .net? I am not on a network. Thanks for any thoughts.

I am attempting to install 2009 relius government forms version 4 full to a second computer which operates in an xp environment. I have the same problem, however, trying to install any of the 2009 versions. It starts to install and then aborts with a cryptic message: Feature Transfer Error Feature: Support Component: App Executibles File: [blank] Error: Access Is Denied Is the problem with the license? If so, how do I change the license to permit the new computer if the old one has died?

Only suggestion is since we are gnats, direct the correspondence to your client and indicate that the investment managers have not provided it. It is the client who will be signing the 5500 and not you. It is best if you can identify the penalties (I suspect that an incomplete 5500 is synonymous with a 5500 not filed?) that the IRS/DOL could assess by law. Then, after you do all this, you still won't get the information but you'll know you operated in a responsible manner.

Termination process has extended length only if application for D-Letter is submitted to IRS. While highly recommended, it is not required to request a D-Letter to terminate a plan. Only timing constrictions are prescribed by PBGC, if Plan is covered under Title IV.

I used CCH and RIA for years, always with some dissatisfaction because they would not go out on the line with interpretation. With the internet, you can genally find all code, regs, notices, rulings, GCMs, etc. As a newsletter, BenefitsLink.com is far more comprehensive, elaborative, and timely. I do, however, recommend the purchase of the ERISA Outline Book which provides clear-cut interpretations where CCH/RIA fall short. In short, quite awhile ago I dropped all of the name services and apart from being ignorant as "H," I'm getting along better than just fine.

Haven't thought this through but what about terminating plan, make distributions with waiver to principals. Assuming you can avoid 10% early distribution penalty, make part of distribution in cash. Then, (if a corporation, they make a loan to the corporation and) make contribution and take another distribution. The waiver agreement would have to provide for additional distributions in the event of additional assets. Only issue then is part of distribution will have been taxable to participants which may be more pleasant than coming up with 80k. This may make sense only if they have taxable income in the entity to offset the contribution.

Interesting. I heard that Jack Benny recently received a recall notice for his Maxwell. Must have come from the same source.

In the past in crossing this bridge we have gone for a D-Letter and in our cover letter indicated that (a) an option is being removed to ease administration, communication, and employee understanding and (b) no one has ever elected the option. The latter point (b) is critical. Then, hope that the request is reviewed by someone who can look beyond the letter of the law. In short, you may be able to reach beyond the arm of 411(d)(6).

Suppose that auditor's report contain no asset acquisitions/disposition schedule. Should I create a schedule that indicates "none" and produce a pdf glop so that the Relius attachment bucket can be filled? Or, can I simply IFILE without it and not get an incomplete filing message?

Two reasons: (1) Schedule C not required for plan less than 100 (2) Someone goofed

For calendar year plan, election to add 2009 excess contributions to PFB as of 1/1/2010 must be made no later than 9/15/2010. Thus, it is possible that 2009 SB has already been filed (e.g., by 7/31/2010) by the time election to add to PFB is made. Thus, in the wake of instructional uncertainty, you would report the full (eligible) excess on the 2009 SB.

Have you identified any government verbiage that supports your contention?

Thought glop was shorter and more p.c. than pasture pie.

If you have the educational connection, Adobe Acrobat on their website offers a discount off the $475 purchase price for Acrobat Pro 9. The discounted cost -- $119. Then, you can take the PDF from the auditor and break it into little glops, thus avoiding having to scan. Plus, the PDF writer/editor is very valuable for other applications. Please note I receive $118.50 of each $119 but otherwise have no interest.

Thanks for taking the time. Your response did a lot to clarify!!! Much appreciated.

Mike, nice answer, but is the auditor's pdf acceptable by IFILE/EFAST2? The point is have no idea what they mean cannot be restricted against editing.